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Revolutionizing Indian Capital Market to E-Governance NSDL Case Study 21st October, 2008

About NSDL
First and largest Securities Depository in India Inaugurated on November 8, 1996 Promoted by IDBI, UTI, NSE Governed by the Depositories Act 1996, SEBI Regulations & NSDL Bye laws and Business Rules

NSDL – Case Studies
Major Projects Implemented
Capital Market Income Tax Administration New Pension Scheme of GOI

1. Capital Market
• Established Central Depository for Securities • Transformed Settlement infrastructure of Indian Capital Market from one of the worst in the world to one of the best. – From title based on Paper Securities to Securities in Electronic Form (dematerialization) – One Single Account of investor holding all his securities – From Paper Based Title Transfer to Electronic Title Transfer

Depository - Highlights
• Managing large database and Centralised Recordkeeping More than 95 Lakh demat accounts Value of securities held NSDL Data centre – around Rs. 32,00,000 Cr. • • Wide network 7,900 Service centers across 900 locations Volume Handling Average messages handled – around 2 million/ day Average value of transactions - about Rs. 5000 Cr. /day • Wide range of Financial instruments in electronic (demat) form Shares, Debentures, Bonds, Commercial papers, warehouse receipts, CDs, PTCs.

Depository - Impact
Parameter Settlement Bad Delivery Litigation Transaction Cost Peak Trading Before Demat Once in 2 Weeks 5-10%

After Demat Once in 2 days NO Bad Delivery Low Lowest 20000 Cr/Day

High High 600 Cr/Day

Company
Elec tronic link

NSDL
lin k El ec tro ni c

Electronic link

Stock Exchange

k nk iin c ll niic on tro tr ec ec E Ell

Banks - DP
BROKER/ CM

Custodian - DP
INVESTOR BROKER/ CM

INVESTOR

2. Tax Information Network-TIN
• An initiative by Income Tax Department for modernisation processing, of direct tax and collection, accounting

monitoring

using information technology.

Limitations...

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